Quote:
Originally Posted by HarryT
But, if my understanding of US tax system is correct (which it may not be!), wouldn't you have to pay the equivalent of sales tax as "use tax", anyway?
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That's true but nobody does it and most people do not know that it's required, though some states started to put a special line on the tax-form to ask specifically about that. Since it cannot be enforced (as opposed to RIAA, the state politicians need to be reelected after all, so they cannot target 100 people out of millions at random
), the "remedy" is to pass a "uniformization" rule that would impose on the vendor the requirement to collect the tax irrespective of location, the way physical retailers do it.
Until now, the big online only retailers that do not charge tax so benefit immensely (Ebay, Amazon) fought successfully the uniformization rule, while Wal Mart, Target, B&N and others that have nexus everywhere started fighting hard for the tax to "level the playing field"